Best CFD Forex Brokers
Contract for Difference (CFD) is a globally renowned tool of trading derivatives, which allows international currency traders and seize opportunities in the fluctuating prices of various financial markets in the world.
The currency trading instruments that are a fundamental aspect of the CFD’s functioning include; bonds, shares, indices, commodities, currencies, and stocks treasuries. Being that CFD Forex brokers allow trade on margin as leveraged products, traders are able to sell or buy based on the prediction of the respective fall or rise of market prices depending on the information offered by their broker firms (and they do not need to purchase the underlying asset).
Traders that use CFD trading get to forgo the cost and taxes that are accompanied by owning assets, for instance, commissions on debits and credits, account management charges or even stamp duty. Traders use CFD to mitigate their portfolio’s exposure to risk; which it achieves by enabling their diversification that allows traders to conduct business across different markets. CFD forex brokers’ global popularity among traders arises from the various benefits they offer but the primary reason is that that they help save money. The article reviews a couple of Forex brokers that are available in the table below.
- Forex Brokers
- Binary Options Brokers
- CFD Trading Brokers
- MT4 Forex Brokers
- MT5 Forex Brokers
- Mobile Forex Brokers
- Spread Betting Brokers
- UK Forex Brokers
- Swiss Forex Brokers
- Australian Brokers
- PAMM Brokers
- ECN Brokers
- US Forex Brokers
- Cent Account Brokers
- Scalping Brokers
- Lowest spread Forex Brokers
- VPS Forex Brokers
- Segregated Accounts Brokers
- 5 digit Brokers
- Hedging Brokers
- Banks with Forex Traiding
|Company||#||Logo||Forex broker||Founded||Regulated||Reviews||Payment systems||Broker type(?)||Min. Deposit||Max.|
|XM.COM||1||XM.COMbest broker||2009||23||5 $||1:888||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||100 %|
|100 $||1:400||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||25 %|
|NordFX||6||NordFX||2008||9||10 $||1:1000||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||100 %|
|Admiral Markets||13||Admiral Markets||2001|
|FIBO Group||14||FIBO Group||1998|
|10||-||1 $||1:1000||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||30 %|
|0 $||1:1000||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||100 %|
Financial Commission, FSA
|1||0 $||1:1000||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||20 %|
В акции участвует каждое пополнение торгового счета на сумму от 300 USD. Количество пополнений счета не ограничено. После пополнения обратитесь к персональному менеджеру для активации бонуса.
|Dukascopy Bank SA||20||Dukascopy Bank SA||1998|
|1000 $||1:200||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||100 %Get a 100% Welcome bonus to your account.|
|Dukascopy Europe||21||Dukascopy Europe||2010|
|Blackwell Global||22||Blackwell Global||2010|
|IFC Markets||23||IFC Markets||2006|
|Saxo Bank||24||Saxo Bank||1992||3|
|10 $||1:500||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||N/A||100 %Bonus CRYPTO 100%|
|Forex Club||32||Forex Club||1997||1|
About CFD Trading
CFD trading involves the trading of given units of particular market instruments that includes; commodities, indices, currency pairs, stocks, shares, treasuries, and bonds among others. The selling or buying of these units depends on the CFD trader’s prediction on the rise or fall of the market prices of these instruments. The trader, therefore, does not need to buy sell or even own the underlying asset which mitigates the cost and yet bares potential to earn a profit.
The profit is earned based on the difference between the buying and selling prices of the units from the CFD instruments, this difference is what forms the spread. The spread, being the basic payment for CFD trading, with its narrowness determining how close a trader’s price is likely to move in their favor. Thus a trader gains more in the value of CFD units they buy or sell if the price of the trade instrument works in their favor. However, if the trade instrument’s price goes against the trader’s unit buying and selling price then there is the incurrence of loss which stretches out to the trader’s deposits.
Most Forex broker firms provide CFDs as part of their server products, some even offer it alongside currency pairs which enable efficiency since the trader does not now need to open separate accounts for both. This article has provided a compilation of Forex broker companies that offer CFD trading.
It is imperative to note, however, that the regulatory bodies of the Forex market with jurisdiction to the United States prohibit CFD trading, according to Securities and Exchange Commission, on Over the Counter financial instruments. So, for international traders residing and operating within the US, this article is not for you.
Pros and cons of CFD trading
There are numerous benefits that traders incur for trading CFD’s. Flexibility, for example, is a key advantage of trading CFDs. It allows traders to not only select the currency or asset that they want to trade but also the values that they may want to stake on a trade. Unlike other forms of trading where traders hold the underlying asset, CFD forex brokers will allow you to trade without purchasing any assets.
As stated above, another benefit of CFD trading is that there is no need to purchase the actual asset that one is trading. Unlike other trades where you may be required to physical purchase the assets, this does not occur in both CFDs. This means that the sale and purchase of these assets are not only decentralized but are also done through a complex network of financial brokers.
Another key benefit that you can incur from trading CFD’s is that you can profit from both a rise and a fall in trading assets. Unlike other trading instruments where you can only gain from an increase in their value, CFD differs sharply due to the ability to even profit from a loss if that was the speculated option.
Cons of using CFDs
A disadvantage of using CFD’s over other instruments is that you are likely to experience more risk than people who trade other instruments. Since CFD’s are largely a leveraged product, overtrading will ultimately lead to exposing your trading portfolio to unwanted risks or even incurring serious losses in your bank account.
Also, CFD trading has a high daily turnover and this may trick you into making large unsustainable gambles. If you are unable to control your emotions such as greed then you can easily lose your invested sum. Another con is that you will likely have to pay capital gains tax as CFD’s are often classified as investments.
AVAtrade is a global Forex giant, an internationally recognized and regulated Forex broker firm which also offers CFD trading. Since its establishment in 2006 AVAtrade has grown tremendously over the years and is well known mostly for its trade volumes that exceed $60 billion a month, not to mention its collection of prestigious awards in recognition of their achievements within the global market.
Aside from its achievements AVAtrade is well known for its wide range of products and services especially in terms of trade platforms, which makes it an ideal choice for different level kind of traders. In its vast product palette, AVAtrade Forex brokers include products such as; Forex majors, exotics, and CFDs. Within its CFD trading service, this firm offers one of the largest varieties of markets and trading instruments compared to its competitors. The firm’s CFD instruments include; indices, stocks, ETFs, bonds, trade commodities and even cryptocurrencies such as Bitcoin, Ethtereum, and Litecoin CFDs. Variety aside, the AVAtrade broker firm offers a relatively broader range of its CFD instruments with units such as 16 commodities, 21 ETFs, 20 worldwide indices, and hundreds of individual shares from different parts of the world.
The AVAtrade’s CFD service, however, stands out from the rest due to a number of factors the most dominant one being that they are among the few Forex broker firms that offer CFDs for cryptocurrencies. It does not offer a relatively wider variety of cryptocurrency instruments for CFD traders but also at more client-friendly rates with figures like 50 currency pairs at a leverage of 1:400 and 1:200 leverage for 11 cryptocurrencies.
They also offer Meta Trader 4 and ZuluTrade which are top of the line software tools that are quite efficient for CFD trading. With the nature of the CFD trading market where there is a major reliance on prediction and accurate ones at that, also considering the time factor, tools such as the kind mentioned offer advance algorithms making them utile for CFD trade. Their standout software tools, however, include, Duplitrade and Robox. Duplitrade which record the trades of different clients that one works with, thus providing their trade history when it is relevant. Robox, on the other hand, is an algorithmic system designed to enable a CFD trader to apply up to 100 million trade strategies based on their marketing needs and risk profile.
The eToro Forex broker firm is well known for its world-class social trading technology, which is a service offered that makes it stand out and puts ahead of its competitors. With over 4.5 million users the eToro’s social trading technology connects traders from over 170 countries around the globe, allowing them to utilize social trading benefits. By using this firm's unique technology like-minded traders are connected and can share ideas, compare notes, discuss market trends, form strategies, and even create meaningful partnerships among other things.
eToro offers a standard variety of CFDs more specifically on the European and US stocks and even includes in its trade instruments, cryptocurrency more specifically bitcoin. Nonetheless, eToro’s 4.5 million clientele all connected via social technology is what makes its CFD service ideal especially for new players in the global trade market. Copy traders are given the opportunity to learn from experienced traders, experienced traders, on the other hand, get the opportunity to learn from each other. With that kind of social trading environment sharing of market information lowers the risk of loss given that traders can make a more informed prediction on their CFD trading before making purchases or sales of their CFD units.
ForexTime is a relatively new name when placed among other global giants in the Foreign exchange market yet it is in its own right a giant in the global Forex market. Known for its affordable multi-featured brokerage not to mention world-class customer service which has earned it global recognition and awards during its short period in the game. The Top Customer Provider 2016 winner boasts of a fully established trade platform equipped with numerous trading options, a variety of software and various client services as well as educational provision all meant to cater for the trading needs of their different types of clientele.
Within its vast trade platform, the ForexTime broker Company offers CFD services to its clients. What makes the CFD service offered by this firm one of a kind is its one of a kind clientele base, which includes six hundred thousand customers. That vast network of clients forms a sturdy foundation of traders for a CFD market. Its award-winning client service also plays a major role in is the efficiency of the CFD platform that they provide. With customer services such as live chat and the provision customer care phone numbers. Among its vast resources, the company also possesses software that entails 5 analysts dedicated to providing informative market updates alongside market forecasts and professional market update videos that are dispersed throughout the day on a daily basis. All of these making the nature of the CFD market more manageable and the assurance of making profit more achievable.
Plus500 Forex broker is a company based in the United Kingdom with relatively significant amount of experience in the Forex market having been established to operate since 2008. It is equipped with rather simple but the most effective client features including WebTrader, and software applications compatible to iPhone, Android, and Windows gadgets as trading platforms and two account types one of them being a demo account thus leaving only one actually functioning account.
Despite its simplicity, this brokerage firm offers stand out CFD services given that it facilitates the trading of Forex by use of CFD instruments. This unique approach to the Forex CFD trade makes the Plus500 firm a lucrative option especially for CFD traders attracting clients from all over the world.
Their CFDs are accompanied with stand-out features like combining CFD instruments such as indices, equities, and trade funds to create a much more useful portfolio not to mention increase the leverage levels. They even have a protection system that assures their clients a less risky investment even in a market as unpredictable as the CFD trade market; this they achieve by offering Guaranteed Stops as well being registered and licensed by the UK FCA which also offers a 50,000 GBP investor protection. They increased their cryptocurrency CFD trading with the introduction of Bitcoin, and went along to introduce crypto trading as another of its unique approaches to CFD trading.
As a result of its success in their unique approach to CFD trading, the Plus500 Forex firm has become among the leading online CFD broker firms with roughly 246,000 new clients according to its latest records achieved within the single year of 2016.
Being a worldly renowned Forex broker this Forex and CFD provider formed in 2006 is registered, regulated and licensed within the EU territory. Markets.com has been in the market for a significant amount of time now and has overtime gained favor among traders having been known for their dedication to their customers. Their higher quality client service that this firm is praised for entails a 24-hour five-day customer phone support, expert account managers assigned personally to each client giving regular information and relevant market data as well as updates and even goes further to provide 0ne-on-one training for novice clients.
The Markets.com CFDs come with other stand-out features that give this Broker firm an upper hand when it comes to competing in the global market. One of these features includes its 50 currency pairs and 11 cryptocurrencies CFD trade instruments offered at leverage of 1:300 and 1:5 respectively. Speaking of CFD trade instruments the Markets.com firm offers a portfolio that entails the combination of these instruments including indices, equities, ETFs and consequently a relatively higher leverage for its CFD clients.
Having begun operation in 1989 the CMC has got to be the oldest Forex broker Company within this compilation, and its age within the global industry has undoubtedly not been in vain. Over its period of operation, this international firm has gained international favor garnering a clientele of 60,000 from different parts around the globe equipped with 15 world distributed offices to serve them.
CMC Markets are known as leading retail Forex and CFD providers on a global scale and for good reason. For one they offers up to 10,000 CFD trading instruments, which includes Forex, security markets, commodities, bonds not to mention the best options in stocks and indices in the world all of which are within major asset classes. Within the 10,000 CFD trading instruments, the CMC Markets offer special features for given trading instruments. One such CFD trading instrument, in this case, is their commodities and futures offered at 110. That, however, is not all considering that these commodities and futures are from 50 corporate bonds and treasuries not mention the higher leverage that comes with them.
The CMC Markets’ vast operation network also forms a major efficiency factor on how this firm offers its CFDs. Operating around the world and regulated within four territories that is the UK, Australia, and Canada this Broker firm is covered under a number of major regulatory agencies. They operate under the London Stock Exchange with the special feature of 50,000 GBP for Investor Protection not to mention their UK FCA and Cyprus by CySEC which all function to protect the client from risk. Speaking of reduced risk the firm also offers Guaranteed Stop Losses for the volatile and unpredictable nature of the CFD market.